The Importance of Banking Sector and its Role on Economic Gr

by sadafmgh
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The relationship between financial and banking sector’s development and economic growth has always been debated. This is because researchers and academics have focused on investigating the relationship between the two. Majority of the studies conducted in this domain are primarily empirical studies, which conclude that financial sector plays a significant role in improving economic condition. This is because a strong and robust financial sector focuses on increasing lending to businesses, which in turn improve business conditions, income inequality, unemployment and poverty. The significance of financial services offered by banks and their impact on improving economic conditions of a nation cannot be denied. This is because banks focus on increasing the economic growth by improving employment conditions, increasing business and commerce opportunities and improving microenvironment for investors. Empirical and theoretical studies indicate that there strong link between banks and economi

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